Finding and hiring top-notch talent is no easy feat.
Riffling through resumes, screening candidates and engaging in multiple rounds of interviews and assessments to acquire new employees takes resources - namely money and time. Bottom line: hiring is an investment. It’s hard work. Despite this, businesses tend to overlook hiring practices. In fact, 95 percent of companies don't have insight into the results their hiring processes deliver. One way to know whether your company hires the right candidates for the right jobs is to regularly assess your quality of hire. This metric for talent acquisition demonstrates how well someone new meets the performance needs of his job. Broadly speaking, quality of hire represents a company-specific index of what a business values and what it is trying to achieve. Employees exist to further a common mission. But their success - just like that of a business - isn’t determined by how well their work is described. Tangible, measurable outcomes tell far more about an employee’s ability to get the job done and advance the company’s goals.
As such, quality of hire reflects production. Companies want individuals who mirror skills important to their work, achieve results and stay for an extended period of time. Quality of hire is one factor that distinguishes one company from another. Businesses successful in maintaining a loyal, high-performing workforce have a competitive edge.
The work it takes to bring new employees on board becomes less meaningful when companies don’t have the data and analytics to decide if an employee is suited for his job after all. The most common assessment - the employment interview - is one of the least accurate predictors of future performance. On the other hand, quality of hire is always measured in hindsight, when actual performance data is at our fingertips. By looking back, company leaders can create more transparency between the hiring process and business results.